BEFORE THE
OFFICE OF THE SECRETARY
DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.
______
Application of )
)
FRONTIER AIRLINES, INC. ) Docket OST-00-7188
)
For an exemption pursuant to )
49 U.S.C. section 41716(b) )
(Denver – New York LaGuardia) )
______)
APPLICATION OF FRONTIER AIRLINES, INC.
Communications with respect to this document should be addressed to:
David Sislowski Edward P. Faberman
FRONTIER AIRLINES, INC. UNGARETTI & HARRIS
General Counsel Counsel for Frontier Airlines, Inc.
Frontier Center One 1500 K Street, NW, Suite 250
7001 Tower Road Washington, DC 20005-1714
Denver, CO 80249-7312 Tel: 202-639-7501
Tel: 720-374-4512 Fax: 202-639-7505
Fax: 720-374-4376
October 24, 2003
BEFORE THE
OFFICE OF THE SECRETARY
DEPARTMENT OF TRANSPORTATION
WASHINGTON, D.C.
______
Application of )
)
FRONTIER AIRLINES, INC. ) Docket OST-00-7188
)
For an exemption pursuant to )
49 U.S.C. section 41716(b) )
(Denver – New York LaGuardia) )
______)
APPLICATION OF FRONTIER AIRLINES, INC.
Frontier Airlines, Inc. (“Frontier”) hereby requests the Department of Transportation (“Department”) to issue an order granting Frontier a total of two (2) additional slots[1] with which to add to its existing service at New York’s LaGuardia Airport (“LGA”) in accordance with 49 U.S.C. Section 41716(b) Frontier serves LGA from Denver International Airport (“DEN”). Section 41716(b) directs the Secretary to grant by Order exemptions from Subparts K and S (the “High Density Airport Rule”) to any new entrant or limited incumbent if the number of slot exemption slots held by the applicant carriers, the total number of slots held does not exceed twenty (20) in number. As of October 24, 2003, Frontier was operating four (4) slots at LGA.
Frontier will utilize the exemption slots to add a third DEN-LGA roundtrip. Frontier has operated at LGA since December 1997. Frontier had operated three (3) daily roundtrips in the LGA-DEN market until June 1999 when it reduced its service to two (2) daily roundtrips. By this request, Frontier would resume the three (3) roundtrip schedule that it previously operated. It would allow Frontier to operate a schedule that would provide passengers with several travel options. Such options are essential to allow a carrier to solidify its presence in a market. Frontier requests approval for the slot request for the third roundtrip to operate effective March 1, 2004. If this request is approved, as of March 1, 2004, Frontier will operate at LGA with six (6) slots, one (1) of which will be in an off peak hour and five (5) of which will be within the slot hours.
After Frontier was awarded LGA slots by the Department in October 1997, fares in the DEN-LGA market for the following full year period that ended on September 30 1998 decreased $72 or 24.7 percent, while passenger numbers increased by 119,000 or 28.2 percent. This positive impact was sustained by comparing data for the full year period that ended on September 30, 1999 to pre-Frontier entry (full year period ended on September 30, 1997). When comparing that data, the decrease in average fare was still down $64 or 22.2 percent, while passengers traveling that route had increased by 219,000 or 88.1 percent.
Since Frontier initiated its LGA service, it has increased its Denver connecting markets including adding dozens of markets through its codeshare partners – Horizon Air and Great Lakes Aviation.
In addition to the requirement that a section 41716(b) applicant possess less than twenty (20) LGA slots, the statute directs the Secretary to only authorize additional slots to applicants proposing to use only Stage 3 aircraft. (Section 41716(c)). Since Frontier’s fleet consists entirely of Stage 3 aircraft, this prerequisite for approval of this application will be fully satisfied. Frontier will operate A319s in this market.
The Congress and the Administration wisely saw the value in permitting new entrant and limited incumbent carriers to offer new LGA service options. Frontier offers the type of competition and fare choices that is the backbone of deregulation. Unlike other airlines, Frontier’s low fares do not have a Saturday night stay requirement. Moreover, Frontier offers one-way tickets. In August 2003, Travel and Leisure magazine recognized Frontier as one of readers’ “Top 10 Domestic Airlines” in its 2003 World’s Best Awards. In 2002 and in 1999, Frontier was also named as the “Best Domestic Low-Fare Carrier” by Entrepreneur Magazine in the publication’s sixth annual Business Travel Awards. Also during 1999, Frontier was recognized by Ernst and Young and received the Entrepreneur of the Year award for the Rocky Mountain Region in the services section. Frontier is pleased to be able to obtain additional LGA authority in order to bring its enhanced service and affordable fare choices to additional travelers. Frontier’s low-fare service has already generated enormous public benefits. Those benefits will continue to increase. At a time that the majority of carriers adding flights at LGA are utilizing small regional jets, Frontier will add a flight with full size jets. The combination of Frontier’s lower fares and its connecting service pattern will generate significant benefits for travelers, Denver, connecting markets and LGA.
WHEREFORE, for the reasons set forth herein Frontier Airlines respectfully requests that the Department grant Frontier two (2) additional LGA slots in accordance with Section 41716(b) for use beginning on March 1, 2003.
Respectfully submitted,
Edward P. Faberman
UNGARETTI & HARRIS
1500 K Street, NW, Suite 250
Washington, DC 20005-1714
Tel: 202-639-7501
Fax: 202-639-7505
Counsel for Frontier Airlines, Inc.
October 24, 2003
5
9
CERTIFICATE OF SERVICE
I hereby certify that I served a copy of the Application of Frontier Airlines, Inc. on October 24, 2003 to each of the persons listed below.
______
Sonia S. Pak
9
Joel Stephen Burton
O’Melveny & Myers
555 Thirteenth Street, NW
Washington, DC 20004-1109
Lorelei Peter
Office of the Chief Counsel
Federal Aviation Administration
800 Independence Avenue, SW
Washington, DC 20591
Jonathan B. Hill
Dow, Lohnes & Albertson
1200 New Hampshire Avenue, NW
Suite 800
Washington, DC 20036
Robert P. Silverberg, Esq.
Silverberg, Goldman & Bikoff, L.L.P.
1101 – 30th Street, N.W.
Suite 120 Washington, D.C. 20007
(Counsel for Midwest Express Airlines, Inc.)
Marshall S. Sinick
Spuire, Sanders & Dempsey L.L.P.
1201 Pennsylvania Avenue, N.W.
P.0. Box 407
Washington, D.C. 20040
(Counsel for American Trans Air)
Carl B. Nelson, Jr.
Associate General Counsel
American Airlines, Inc.
1101 17th Street, NW
Washington, DC 20036
Bruce Rabinovitz
Wilmer, Cutler & Pickering
2449 M Street, NW
Washington, DC 20037-1420
Robert E. Cohn
Shaw, Pittman, Potts & Trowbridge
2300 N Street, N.W.
Washington, D.C. 20036
(Counsel for Delta Airlines)
Joanne W. Young
Baker & Hostetler, L.L.P.
Washington Square, Suite 1100
1050 Connecticut Avenue, N.W.
Washington, D.C. 20036
(Counsel for America West Airlines)
Jeffery A. Manley
Wilmer, Cutler & Pickering
2445 M Street, N.W.
Washington, D.C. 20037
(Counsel for United Airlines)
Megan Rae Rosia
Associate General Counsel
Northwest Airlines, Inc.
901 15th Street, N.W.
Suite 310
Washington, D.C. 20005
Mr. Michael Reynolds
Acting Assistant Secretary for Aviation & International Affairs
U.S. Department of Transportation
400 Seventh Street, S.W.
Washington, DC 20590
William R. DeCota
Director, Aviation Department
Port Authority of New York and New Jersey
One World Trade Center
New York, NY 10048
Alfred J. Graser
Deputy Director of Aviation
LaGuardia Airport
Port Authority of New York & New Jersey
One World Trade Center
New York, NY 10048
Brian Meehan
Federal Aviation Administration
ATP-120, Room 630
800 Independence Avenue, SW
Washington, DC 20591
Roger Brown
Office of the Honorable Wayne Allard
Unite States Senate
SD-525 Dirksen Senate Office Building
Washington, DC 20510-0606
Larry Vigil
Office of the Honorable Ben Nighthorse Campbell
United States Senate
SR-380 Russell Senate Office Building
Washington, DC 20510-0605
Dale Jones
Office of the Honorable Bob Beauprez
U.S. House of Representatives
511 Cannon House Office Building
Washington, DC 20515-0607
Susie Gorden
Office of the Honorable Diana DeGette
U.S. House of Representatives
1530 Longworth House Office Building
Washington, DC 20515-0601
Mickey Ferrell
Office of the Honorable Joel Hefley
U.S. House of Representatives
2372 Rayburn House Office Building
Washington, DC 20515-0605
Jason Reese
Office of the Honorable Scott McInnis
U.S. House of Representatives
320 Cannon House Office Building
Washington, DC 20515-0603
Christa Brinkley
Office of the Honorable Marilyn N. Musgrave
U.S. House of Representatives
1208 Longworth House Office Building
Washington, DC 20515-0604
Mac Zimmerman
Office of the Honorable Tom Tancredo
U.S. House of Representatives
1130 Longworth House Office Building
Washington, DC 20515-0606
Trudy Kareus
Office of the Honorable Mark Udall
U.S. House of Representatives
115 Cannon House Office Building
Washington, DC 20515-0602
Turner West
Co-Manager of Aviation
Denver International Airport
8500 Pena Boulevard
Denver, CO 80249-6340
Vicki Braunagel
Co-Manager of Aviation
Denver International Airport
8500 Pena Boulevard
Denver, CO 80249-6340
Mayor John Hickenlooper
1437 Bannock Street
Denver, CO 80202
John Bennet
Chief of Staff
Mayor Hickenlooper
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[1] These 2 slots include a 0600.